Street Calls of the Week
Investing.com - Deutsche Bank raised its price target on ASM International NV (AS:ASMI) to EUR550.00 from EUR525.00 while maintaining a Buy rating on Wednesday.
The firm noted that ASM International updated its outlook, indicating softer bookings for the second half of 2025, primarily due to lower-than-expected demand in leading-edge logic and foundry segments, as well as decreased demand from power, wafer, and analog markets.
Deutsche Bank pointed out that ASM International now expects its book-to-bill ratio to remain below 1x throughout the second half of 2025, revised from previous guidance that limited this weakness to the third quarter.
The company’s order backlog is projected to decline to approximately EUR1.2 billion by year-end, reaching its lowest level since the first quarter of 2022 and representing about 4-5 months of production.
Deutsche Bank attributed the slower-than-expected bookings to China normalization, challenges with Intel’s 18A technology, and greater-than-anticipated tool reuse by TSMC at its 3nm node.
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